(A Non-Linked, Participating, Individual, Life Assurance Savings Plan)
LIC’s Aadhaar Stambh Plan In Chandigarh. It is a Non-Linked, Participating, Individual, Life Assurance plan
designed exclusively for male lives, which offers a combination of protection and
savings. This plan provides financial support for the family in case of unfortunate death
of the policyholder any time before maturity and a lump sum amount at the time of
maturity for the surviving policyholder.
In addition, this plan also takes care of liquidity needs through its Auto Cover as well as
loan facility.
1. Benefits:
a) Death Benefit:
Death benefit payable On death of the Life Assured during the policy term provided
policy is in-force (i.e. all due premiums have been paid) then:
On death during first five years: “Sum Assured on Death” shall be payable.
On death after completion of five policy years but before the date of maturity: “Sum
Assured on Death” and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Death” is defined as the higher of
• 7 times of annualised premium; or
• 100% of Basic Sum Assured.
The death benefit shall not be less than 105% of total premiums paid upto the date
of death.
Premiums referred above shall not include any taxes, extra premium and rider
premium, if any.
b) Maturity Benefit:
On Life assured surviving to the end of the policy term, provided all due premiums
have been paid (i.e. the policy is in–force), “Sum Assured on Maturity” along with
Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
c) Loyalty Addition:
Provided the policy has completed five policy years and atleast 5 full
years’ premium have been paid, then depending upon the Corporation’s
experience the policies under this plan shall be eligible for Loyalty Addition at the
time of exit in the form of Death during the policy term or Maturity, at such rate
and on such terms as may be declared by the Corporation. Under a paid-up policy,
Loyalty Addition shall be payable for the completed policy years for which the policy
was in-force.
In addition, Loyalty Addition, if any, shall also be considered in Special Surrender
Value calculation on surrender of policy during the policy term, provided the policy
has completed five policy years and atleast 5 full years’ premium have been paid.
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2. Eligibility Conditions and Other Restrictions:
(This plan is only available for standard healthy lives without undergoing any medical
examination)
a) Minimum Basic Sum Assured per life* : ` 75,000
b) Maximum Basic Sum Assured per life* : ` 300,000
The Basic Sum Assured shall be in multiples of ` 5,000/- from Basic Sum Assured `75,000
to `1,50,000/- and `10,000/- for Basic Sum Assured above `1,50,000/-
c) Minimum Age at entry 8 years (completed)
d) Maximum Age at entry 55 years (nearest birthday)
e) Policy Term 10 to 20 years
f) Premium Paying Term Same as Policy Term
g) Maximum Age at Maturity 70 years (nearest birthday)
Date of commencement of risk: Under this plan the risk will commence immediately from
the date of acceptance of the risk.
Date of vesting under the plan:
If the policy is issued on the life of a minor, the policy shall automatically vest in
the Life Assured on the policy anniversary coinciding with or immediately following
the completion of 18 years of age and shall on such vesting be deemed to be a contract
between the Corporation and the Life Assured.
* The total Basic Sum Assured under all policies issued to an individual under this plan
shall not exceed ` 3 lakh.
3. Options Available :
I. Rider Benefits:
The policyholder has an option of availing LIC’s Accident Benefit Rider (UIN: 512B203V03)
under this plan at any time under an inforce policy within the policy term of the Base
plan provided the outstanding policy term of the base plan is atleast 5 years. The benefit
cover under this rider shall be available during the policy term. If this rider is opted for, in
case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum
The Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
For more details on the above riders, refer to the rider brochure or contact LIC’s nearest
Branch Office.
II. Settlement Option for Maturity Benefit:
Settlement Option is an option to receive Maturity Benefit in instalments over the chosen
period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as
paid-up policy. This option can be exercised by the Policyholder during minority of the
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Life Assured or by Life Assured aged 18 years and above, for full or part of Maturity
proceeds payable under the policy. The amount opted for by the Policyholder/Life
Assured (ie. Net Claim Amount) can be either in absolute value or as a percentage of the
total claim proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly
intervals, as opted for, subject to minimum instalment amount for different modes of
payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-
If the Net Claim Amount is less than the required amount to provide the minimum
instalment amount as per the option exercised by the Policyholder/Life Assured, the claim
proceeds shall be paid in lumpsum only.
The interest rates applicable for arriving at the instalment payments under Settlement
Option shall be as fixed by the Corporation from time to time.
For exercising the Settlement Option against Maturity Benefit, the Policyholder/Life Assured shall be required to exercise option for payment of net claim amount in instalments
at least 3 months before the due date of maturity.
The first payment will be made on the date of maturity and thereafter, based on the mode
of instalment payment opted for by the policyholder, every month or three months or six
months or annually from the date of maturity, as the case may be.
After the commencement of Instalment payments under Settlement Option:
a. If a Life Assured, who has exercised Settlement Option against Maturity Benefit, desires to
withdraw this option and commute the outstanding instalments, the same shall be allowed
on receipt of written request from the Life Assured. In such case, the lump sum amount
which is higher of the following shall be paid and policy shall terminate,
• discounted value of all the future instalments due; or
• (the original amount for which settlement option was exercised) less (sum of total
instalments already paid).
b. The interest rates applicable for discounting the future instalment payments shall be as
fixed by the Corporation from time to time.
c. After the Date of Maturity, in case of death of the Life Assured, who has exercised
Settlement Option, the outstanding instalments will continue to be paid to the nominee
as per the option exercised by the Life Assured and no alteration, whatsoever, shall be
allowed to be made by the nominee.
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III. Option to take Death Benefit in instalments:
This is an option to receive death benefit in instalments over the chosen period of 5 or
10 or 15 years instead of lump sum amount under an in-force as well as paid-up policy.
This option can be exercised by the Policyholder during minority of the Life Assured or
by Life Assured aged 18 years and above, during his/her life time; for full or part of Death
benefits payable under the policy. The amount opted for by the Policyholder/Life Assured
(ie. Net Claim Amount) can be either in absolute value or as a percentage of the total claim
proceeds payable.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly
intervals, as opted for, subject to minimum instalment amount for different modes of
payments being as under:
Mode of Instalment payment Minimum instalment amount
Monthly ` 5,000/-
Quarterly ` 15,000/-
Half-Yearly ` 25,000/-
Yearly ` 50,000/-

If the Net Claim Amount is less than the required amount to provide the minimum instalment amount as per the option exercised by the Policyholder/Life Assured, the claim
proceeds shall be paid in lumpsum only.
The interest rates applicable for arriving at the instalment payments under this option shall
be as fixed by the Corporation from time to time.
For exercising option to take Death Benefit in instalments, the Policyholder during minority
of the Life Assured or the Life Assured, if major, can exercise this option during his/her
lifetime while in currency of the policy, specifying the period of Instalment payment and
net claim amount for which the option is to be exercised. The death claim amount shall
then be paid to the nominee as per the option exercised by the Policyholder/Life Assured
and no alteration, whatsoever, shall be allowed to be made by the nominee.
4. Payment of Premiums:
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals
(monthly premiums through NACH only) or through salary deductions over the term of policy.
5. Grace Period
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly
premiums and 15 days for monthly premiums from the date of first unpaid premium.
During this period, the policy shall be considered in-force with the risk cover without any
interruption as per the terms of the policy.If the premium is not paid before the expiry of the
days of grace, the Policy lapses.
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The above grace period will also apply to rider premium which is payable along with
premium for base policy.
6. Sample Illustrative Premium:
The sample illustrative annual premiums for Basic Sum Assured of ` 1 Lakh for Standard lives
are as under:
AGE/POLICY TERM 10 15 20
10 8,732/- 5,253/- 3,567/-
20 8,766/- 5,287/- 3,601/-
30 8,786/- 5,316/- 3,646/-
40 8,879/- 5,454/- 3,832/-
50 9,222/- 5,880/- 4,332/-
The above premium is exclusive of taxes.
7. Rebates:
Mode Rebate:
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly, Monthly (through NACH)
& Salary deduction – NIL
High Basic Sum Assured Rebate:
Basic Sum Assured (BSA) Rebate (`)
75,000 to 1,90,000 – Nil
2,00,000 to 2,90,000 – 1.50%o BSA
3,00,000 – 2.00%o BSA
8. Revival:
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy
can be revived within a period of 5 consecutive years from the date of first unpaid premium
but before the date of Maturity, as the case may be. The revival shall be effected on payment
of all the arrears of premium(s) together with interest (compounding half yearly) at such
rate as may be fixed by the Corporation from time to time and on satisfaction of Continued
Insurability of the Life Assured on the basis of information, documents and reports that are
already available and any additional information in this regard if and as may be required in
accordance with the Underwriting Policy of the Corporation at the time of revival, being
furnished by the Policyholder/Life Assured.
The Corporation reserves the right to accept at original terms, accept with modified terms
or decline the revival of a discontinued policy. The revival of discontinued policy shall
take effect only after the same is approved accepted and revival receipt is issued by
the Corporation.
Revival of rider, if opted for, will be considered along with revival of the Base Policy, and not
in isolation.
The Revival Period and Auto Cover Period (as mentioned in para 8 below) shall run concurrently i.e. Auto Cover period does not extend period of revival.
9. Paid-up Policy:
If less than two years’ premiums have been paid and any subsequent premium be not duly
paid, all the benefits under the policy shall cease after the expiry of grace period from the
date of first unpaid premium and nothing shall be payable.
If,after at least two full years’ premiums have been paid and any subsequent premiums be
not duly paid, the policy shall not be void but shall continue as a paid-up policy till the
end of the policy term. However, if at least three full year’s premiums have been and any
subsequent premiums be not duly paid, under such policies Auto Cover Period as mentioned
below shall be applicable.
Auto Cover Period:
“Auto Cover Period” under a paid-up policy shall be the period from due date of first unpaid
premium (FUP). The duration of Auto Cover Period shall be as under:

1. If at least three full years’ but less than five full years’ premiums have been paid under a policy
and any subsequent premium is not duly paid: Auto Cover Period of six months shall
be available.

2. If at least five full years’ premiums have been paid under a policy and any subsequent
premium is not duly paid: Auto Cover Period of two years shall be available.
a) The benefits payable under a paid-up policy during Auto Cover Period shall be
as follows:
1. On death: Death benefit, as payable under an inforce policy, shall be paid after
deduction of (a) the unpaid premium(s) in respect of the base policy with interest
thereon upto the date of death, and (b) the balance premium(s) for the base policy
falling due from the date of death and before the next policy anniversary, if any.
2. On maturity: The Sum Assured on Maturity under paid-up policy shall be reduced to
such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured
on Maturity multiplied by the ratio of the total period for which premiums have already
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been paid bears to the maximum period for which premiums were originally payable
i.e. [(Number of premiums paid / Total Number of premiums payable) x (Sum Assured
on Maturity)]. In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any,
shall also be payable on maturity.

b) The benefits payable under a paid-up policy before the start of Auto Cover Period and
after the expiry of Auto Cover Period shall be as follows::
1. On death: Sum Assured on Death under a paid-up policy shall be reduced to such a
sum, called “Death Paid-up Sum Assured” and shall be equal to Sum Assured on Death
multiplied by the ratio of the total period for which premiums have already been
paid bears to the maximum period for which premiums were originally payable i.e.
[Sum Assured on Death* (Number of premiums paid / Total number of premiums payable)]. In addition to the Death Paid-up Sum Assured, Loyalty Addition, if any, shall also be
payable on death after the expiry of Auto Cover Period.
2. On maturity: The Sum Assured on Maturity under paid-up policy shall be reduced to
such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured
on Maturity multiplied by the ratio of the total period for which premiums have already
been paid bears to the maximum period for which premiums were originally payable
i.e. [(Number of premiums paid / Total Number of premiums payable) x (Sum Assured
on Maturity)].In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any,
shall also be payable on maturity.

Under a Paid-up policy, Loyalty Addition , if any, shall be payable for the completed
policy years for which the policy was inforce, provided the premium have been paid for
atleast 5 full years and after completion of 5 policy years.

Rider shall not acquire any paid-up value and rider benefit cease to apply if policy is in
lapsed condition.

10. Surrender:
The policy can be surrendered at any time provided premiums have been paid for atleast
two consecutive years. On surrender of the policy, the Corporation shall pay the Surrender
Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.
The Special Surrender Value is reviewable and shall be determined by the Corporation from
time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable during the policy term shall be equal to the
total premiums paid (excluding extra premiums, taxes and premium for rider, if opted for)
multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid
under the policy.
These Guaranteed Surrender Value factors expressed as percentages will depend on the
policy term and policy year in which the policy is surrendered and are specified as below:
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Guaranteed Surrender Value factors applicable to total premiums paid
Policy Term
Policy Year 10 11 12 13 14 15 16 17 18 19 20
1 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
3 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00% 35.00%
4 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
5 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
6 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
7 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00% 50.00%
8 65.00% 60.00% 57.50% 56.00% 55.00% 54.29% 53.75% 53.33% 53.00% 52.73% 52.50%
9 90.00% 70.00% 65.00% 62.00% 60.00% 58.57% 57.50% 56.67% 56.00% 55.45% 55.00%
10 90.00% 90.00% 72.50% 68.00% 65.00% 62.86% 61.25% 60.00% 59.00% 58.18% 57.50%
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11 90.00% 90.00% 74.00% 70.00% 67.14% 65.00% 63.33% 62.00% 60.91% 60.00%
12 90.00% 90.00% 75.00% 71.43% 68.75% 66.67% 65.00% 63.64% 62.50%
13 90.00% 90.00% 75.71% 72.50% 70.00% 68.00% 66.36% 65.00%
14 90.00% 90.00% 76.25% 73.33% 71.00% 69.09% 67.50%
15 90.00% 90.00% 76.67% 74.00% 71.82% 70.00%
16 90.00% 90.00% 77.00% 74.55% 72.50%
17 90.00% 90.00% 77.27% 75.00%
18 90.00% 90.00% 77.50%
19 90.00% 90.00%
20 90.00%
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11. Policy Loan:
Loan can be availed during the policy term provided atleast two full years’ premiums have
been paid and subject to the terms and conditions as the Corporation may specify from time
to time.
The interest rate to be charged for policy loan and as applicable for entire term of the loan
shall be determined at periodic intervals. The applicable interest rate shall be as declared by
the Corporation based on the method approved by the IRDAI.
The maximum loan as a percentage of surrender value shall be as under:
 For inforce policies – upto 90%
 For paid-up policies – upto 80%
Any loan outstanding along with interest shall be recovered from the claim
proceeds at the time of exit.
12. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any
other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as
applicable from time to time.
The amount of applicable taxes as per the prevailing rates, shall be payable by the
policyholder on premiums payable (for base policy and rider, if any including extra
premiums, which shall be collected separately over and above in addition to the
premiums payable by the policyholder. The amount of tax paid shall not be considered for the
calculation of benefits payable under the plan.
Regarding, Income tax benefits/implications on premium(s) paid and benefits payable under
this plan, please consult your tax advisor for details.

13. Free-look period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the
policy, the policy may be returned to the Corporation within 15 days from
the date of receipt of the policy bond stating the reasons of objections.
On receipt of the same the Corporation shall cancel the policy and return the amount of
premium deposited after deducting the proportionate risk premium (for base plan and
rider, if any) for the period of cover and stamp duty charges.
14. Exclusion:
Suicide: – A policy shall be void
i. If the Life Assured (whether sane or insane) commits suicide at any time within 12
months from the date of commencement of risk and the Corporation will not entertain
any claim except for 80% of the total premiums paid, provided the policy is inforce.
ii. If the Life Assured (whether sane or insane) commits suicide within 12 months from
date of revival, an amount which is higher of 80% of the premiums paid till the date of
death or the Surrender Value available as on the date of death, shall be payable. The
Corporation will not entertain any other claim.
This clause shall not be applicable for a policy lapsed without acquiring paid-up value
and nothing shall be payable under such policy.
Note: Premiums referred above shall not include any taxes, extra premium and any rider
premium
BENEFIT ILLUSTRATION:
Age of the life assured (Nearer Birthday) 35 Years
Policy Term 20 Years
Premium Payment Mode Yearly
Basic Sum Assured ` 1,00,000
Premium (Excluding Taxes) ` 3,709
Benefits available under different scenarios:
(Amount in `)
End
of
Year
Total
Premiums
paid till the
end of
the year
Gauranteed
Benefits
Non-Guaranteed
Benefits
(Loyalty Addition)
Total Maturity
Benefit including
Loyalty Addition,
if any
Total Death Benefit
including Loyalty
Addition, if any
Sum
Assured on
Maturity
Sum
Assured on
Death
Scenario
1
Scenario
2
Scenario
1
Scenario
2
Scenario
1
Scenario
2
5 18545 0 100000 0 0 0 0 100000 100000
10 37090 0 100000 0 6500 0 0 100000 106500
15 55635 0 100000 0 11500 0 0 100000 111500
20 74180 100000 100000 0 16500 100000 116500 100000 116500
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Disclaimer:
i) This illustration is applicable to a standard (from medical, life style and occupation
point of view) life wherein any riders are not opted.
ii) Some benefits are guaranteed and some benefits which are Non Guaranteed
benefits with returns based on the future performance are show for two different rates of
assumed future investment returns.
iii) The non-guaranteed benefits in above illustration are calculated so that they are
consistent with the Projected Investment Rate of Return assumption of 4% p.a.
(Scenario 1) and 8% p.a. (Scenario 2). In other words, in preparing this benefit
illustration, it is assumed that the Projected Investment Rate of Return that LICI
will be able to earn throughout the term of the policy will be 4% p.a. or 8% p.a.,
as the case may be. The Projected Investment Rate of Return is not guaranteed and
they are not the upper or lower limits of what you might get back, as the value
of your policy is dependent on a number of factors including actual future investment
performance
iv) The main objective of the illustration is that the client is able to appreciate the features
of the product and the flow of benefits in different circumstances with some level of
quantification.
SECTION 45 OF THE THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 shall be as amended from time
to time. The simplified version of this provision is as under:
Provisions regarding policy not being called into question in terms of Section 45 of
the Insurance Act, 1938 are as follows:
1. No Policy of Life Insurance shall be called in question on any ground
whatsoever after expiry of 3 yrs from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
2. On the ground of fraud, a policy of Life Insurance may be called in question
within 3 years from
a. the date of issuance of policy or
b. the date of commencement of risk or
c. the date of revival of policy or
d. the date of rider to the policy
whichever is later.
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For this, the insurer should communicate in writing to the insured or legal
representative or nominee or assignees of insured, as applicable, mentioning the ground
and materials on which such decision is based.
3. Fraud means any of the following acts committed by insured or by his agent, with the
intent to deceive the insurer or to induce the insurer to issue a life insurance policy:
a. The suggestion, as a fact of that which is not true and which the insured
does not believe to be true;
b. The active concealment of a fact by the insured having knowledge or belief of the fact;
c Any other act fitted to deceive; and
d Any such act or omission as the law specifically declares to be fraudulent.
4. Mere silence is not fraud unless, depending on circumstances of the case, it is the duty of the
insured or his agent keeping silence to speak or silence is in itself equivalent to speak.
5. No Insurer shall repudiate a life insurance Policy on the ground of Fraud, if the Insured /
beneficiary can prove that the misstatement was true to the best of his knowledge and
there was no deliberate intention to suppress the fact or that such mis-statement of or
suppression of material fact are within the knowledge of the insurer. Onus of disproving
is upon the policyholder, if alive, or beneficiaries.
6. Life insurance Policy can be called in question within 3 years on the ground that any
statement of or suppression of a fact material to expectancy of life of the insured was
incorrectly made in the proposal or other document basis which policy was issued
or revived or rider issued. For this, the insurer should communicate in writing to the
insured or legal representative or nominee or assignees of insured, as applicable,
mentioning the ground and materials on which decision to repudiate the policy of life
insurance is based.
7. In case repudiation is on ground of mis-statement and not on fraud, the
premium collected on policy till the date of repudiation shall be paid to the insured or
legal representative or nominee or assignees of insured, within a period of 90 days from
the date of repudiation.
8. Fact shall not be considered material unless it has a direct bearing on the risk undertaken by
the insurer. The onus is on insurer to show that if the insurer had been aware of the said
fact, no life insurance policy would have been issued to the insured.
9. The insurer can call for proof of age at any time if he is entitled to do so and no policy
shall be deemed to be called in question merely because the terms of the policy are
adjusted on subsequent proof of age of life insured. So, this Section will not be applicable
for questioning age or adjustment based on proof of age submitted subsequently.
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[Disclaimer: This is not a comprehensive list of Section 45 of the Insurance
Act, 1938 and only a simplified version prepared for general information.
Policyholders are advised to refer to Section 45 of the Insurance Act, 1938,
for complete and accurate details.]
Prohibition of Rebates (Section 41 of the Insurance Act, 1938)
1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to
any person to take out or renew or continue an insurance in respect of any kind of risk
relating to lives or property in India, any rebate of the whole or part of the commission
payable or any rebate of the premium shown on the policy, nor shall any person taking
out or renewing or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the insurer.
2) Any person making default in complying with the provisions of this section shall be liable
for a penalty which may extend to ten lakh rupees.